FXStreet (Córdoba) – EUR/USD was trading around 1.1290 before the release of the FOMC minutes and then jumped above 1.1300. It reached 1.1323, hitting the strongest level since September 21.
The pair was holding above 1.1300 with a bullish tone as the US dollar tumbled across the board following the Fed’s minutes.
The document from the September meeting, when the FOMC decided to leave rates unchanged, showed that officials were worried about low inflation. Still many members see conditions for the liftoff to be met during 2015.
“After assessing the outlook for economic activity, the labor market, and inflation and weighing the uncertainties associated with the outlook, all but one member concluded that, although the U.S. economy had strengthened and labor underutilization had diminished, economic conditions did not warrant an increase in the target range for the federal funds rate at this meeting”, the minutes stated. The next meeting will be October 27/28.
EUR/USD technical levels
To the upside, potential resistance level might lie at 1.1315/20 (Oct 2 highs), 1.1330 (Oct 15 high) and 1.1370/75 (Sep 14 high). On the opposite direction, support might now lie 1.1260 (intraday level), 1.1240 (4-hours 20-MA), 1.1210 (Oct 7 low) and 1.1170 (Oct 6 low).
(Market News Provided by FXstreet)